nvtr20180928

Significant Accounting Policies [Text Block]

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

– Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC (“Algostim”), (ii) PelviStim LLC (“PelviStim”), and (iii) NeuroNexus Technologies, Inc. (“NeuroNexus”) (collectively “Nuvectra” or the “Company”), is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. The Algovita® Spinal Cord Stimulation (“SCS”) System (“Algovita”) is the Company’s

first

commercial offering and is Conformité Européene (“CE”) marked and United States Food & Drug Administration (“FDA”) approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra’s innovative technology platform also has capabilities under development to support other neurological indications such as sacral neuromodulation (“SNM”) for the treatment of overactive bladder and deep brain stimulation (“DBS”) for the treatment of Parkinson’s disease and Essential Tremor. In addition, the Company’s NeuroNexus subsidiary designs, manufactures and markets neural-interface technologies for the neuroscience clinical research market.

March 2016,

the Company was formed as a separate public company as a result of a spin-off (the “Spin-off”) from Integer Holdings Corporation (“Integer”).

Basis of Presentation

– The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information (Accounting Standards Codification (“ASC”)

270,

Interim Reporting

) and with the instructions to Form

-Q and Article

of Regulation S-

Accordingly, they do

not

include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. Operating results for interim periods are

not

necessarily indicative of results that

may

be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Nuvectra for the periods presented.

Liquidity and Capital Resources

– The Company has incurred significant net losses and negative cash flows from operations since inception and expects to incur additional net losses for the foreseeable future.

Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the

first

and

third

quarters of

2018,

credit facility draw-downs, and cash generated from sales, should meet its cash needs for at least the next

twelve

months.

September 14, 2018,

pursuant to a

second

underwritten shelf takedown, with Piper Jaffray & Co. serving as representative of the several underwriters, the Company sold

3,248,750

shares of its common stock and received net proceeds of approximately

$64.6

million, after deducting underwriting discounts and commissions of approximately

$4.1

million and other expenses of approximately

$0.3

million.

The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and

may

in the future seek, to explore strategic alternatives to finance its business plan, including but

not

limited to, a public offering of its common stock, private equity or debt financings, sale of non-strategic assets, or other sources, such as strategic partnerships. The Company has elected and

may

continue to elect to make near-term decisions, including engaging in various capital generating initiatives, to provide additional liquidity. If the Company is unable to raise additional funds when needed, it

may

be required to delay, reduce, or terminate some or all of its development plans. The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, there can be

assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.

Use of Estimates

– The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of sales and expenses during the reporting period. Actual results could differ materially from those estimates. Significant items subject to such estimates and assumptions include inventories, tangible and intangible asset valuations, revenue, stock-based compensation, warrants, certain accruals, and income tax accounts.

Inventories

– The value of inventories, comprised solely of finished goods, are stated at the lesser of net realizable value or cost, determined using the

first

-in,

first

-out (“FIFO”) method. To value inventory, management must estimate excess or obsolete inventory, as well as inventory that is

not

of saleable quality. This valuation involves an inherent level of risk and uncertainty due to unpredictability of trends in the industry and customer demand for the Company’s products. In assessing the ultimate realization of inventories, management must make judgments as to future demand requirements and compare that with the current or committed inventory levels. Reserve requirements generally increase as demand decreases due to market conditions and technological and product life-cycle changes.

Write-downs of excess and obsolete inventories were

$0.4

million and

$0.1

million in the

third

quarter of

2018

and

2017,

respectively. Future events and variations in valuation methods or assumptions

may

cause significant fluctuations in this estimate and could have a material impact on the Company’s results.

Goodwill Valuation –

The Company tests its goodwill balances for impairment on

December 31,

or more frequently if certain indicators are present or changes in circumstances suggest that impairment

may

exist. When evaluating goodwill for impairment, the Company compares the fair value of a reporting unit with its carrying amount. The Company recognizes an impairment charge for the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value; however, the loss recognized would

not

exceed the total amount of goodwill allocated to the reporting unit. The Company

first

assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test is used to identify goodwill impairment and measure the amount for a goodwill impairment to be recognized, if any. In addition, the Company also performs impairment tests of its other long-lived assets in accordance with ASC

360

10,

Impairment and Disposal of Long-Lived Assets

, when indicators of impairment exist. The Company completed its annual impairment test of goodwill as of

December 31, 2017

and the Company determined that it was more likely than

not

that the fair value of both reporting units exceeded their carrying value. The Company did

not

identify any indicators of impairment that required an impairment test in the

first

nine

months of

2018

for its Nuvectra reporting unit. The Company did

not

identify any indicators of impairment that required an impairment test in the

second

third

quarters of

2018

for its NeuroNexus reporting unit. In the

first

quarter of

2018,

the Company evaluated strategic alternatives with respect to its NeuroNexus reporting unit which triggered an interim impairment test. Upon completing the goodwill impairment test for NeuroNexus, the Company determined that its fair value exceeded its carrying value.

Impairment of Long-Lived Assets

– The Company assesses the impairment of definite-lived long-lived assets or asset groups when events or changes in circumstances indicate that the carrying value

may

not

be recoverable. Factors that are considered in deciding when to perform an impairment review include: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group; or a current expectation that, more likely than

not,

a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than

not

refers to a level of likelihood that is more than

percent.

not

recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and

impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. The Company did

not

identify any indicators of impairment in the

first

nine

months of

2018

for the Nuvectra asset group or in the

second

third

quarters of

2018

for the NeuroNexus asset group; however, as noted above, the Company performed an interim impairment test in the

first

quarter of

2018

for the NeuroNexus asset group and determined the undiscounted cash flows exceeded the carrying amounts of long-lived assets.

Concentration of Credit Risk

– Financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable owed to the Company by its customers. The Company performs on-going credit evaluations of its customers.

customers individually accounted for more than

10%

of the Company’s consolidated revenues in the

nine

months ended

September 30, 2018

2017.

customers individually accounted for more than

10%

of the Company’s accounts receivable at

September 30, 2018

December 31, 2017.

Additionally, the Company maintains cash deposits with major banks, which from time to time

may

exceed insured limits. The Company performs on-going credit evaluations of its banks. See Note

“Business Segments, Geographic and Concentration Risk Information” for additional information.

Warranty Reserve

– The Company offers a warranty on certain of its products and maintains a warranty reserve, as a component of other current liabilities, for any potential claims. The Company estimates its warranty reserve based upon an analysis of all identified or expected claims and an estimate of the cost to resolve those claims. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and differences between actual and expected warranty costs per claim. The Company periodically assesses the adequacy of its warranty liability and adjusts the amount as necessary.

Subsequent Events

– The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

XML 19 R9.htm IDEA: XBRL DOCUMENT

Note 2 - Revenue From Contracts With Customers

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Text Block]

2.	REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company adopted ASC

606,

Revenue From Contracts With Customers

(“ASC

606”

), on

January 1, 2018

using the modified retrospective method for all contracts

not

completed as of the date of adoption. The adoption of ASC

606

did

not

have a material impact on the Company’s consolidated financial statements. The reported results for

2018

reflect the application of ASC

606

guidance while the reported results for

2017

were prepared under the guidance of ASC

605,

Revenue Recognition

(“ASC

605”

), which is also referred to herein as "previous U.S. GAAP." The adoption of ASC

606

represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company's goods and services and will provide financial statement readers with enhanced disclosures. In accordance with ASC

606,

revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services, and excludes any sales incentives or taxes collected from a customer which are subsequently remitted to government authorities. To achieve this core principle, the Company applies the following

five

steps:

)

Identify the contract(s) with a customer

- A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to those goods or services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration.

)

Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from

third

parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are

not

met the promised goods or services are accounted for as a combined performance obligation.

)

Determine the transaction price

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will

not

occur. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below.

)

Allocate the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is

not

observable through past transactions, the Company estimates the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

)

Recognize revenue when (or as) the Company satisfies a performance obligation

The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer.

Disaggregated

Revenue

- Revenue

Streams & Timing of Revenue Recognition

11,

“Business Segments, Geographic and Concentration Risk Information” for further disaggregation of revenue by reportable segment.

Product Sales

The Company’s product sales revenues include sales of Algovita and neural interface systems and components to the neuroscience and clinical markets. Contracts

may

include

one

or more systems or components, each is determined to be a distinct performance obligation. Product revenue was

$36.7

million for the

nine

months ended

September 30, 2018.

Algovita

– Generally, Algovita product sales are made through the Company’s trained personnel when the Company has the obligation to perform the initial programming and stimulation which occurs on the same day as the trial or permanent procedure. For these customers, the products and the programming and stimulation services are

not

separately distinct but rather are a combined performance obligation for which revenue is recognized upon completion of the procedure. In cases where the customer has a Clinician Programmer and has undergone the requisite training in order to perform the programming and stimulation services, the Company recognizes revenue upon shipment when control passes to the customer. Similarly, when the Company sells through distributors or ships product directly to the end user and has

additional obligations, revenue is recognized at the time of shipment when control passes to the customer. For the remaining sales that are sent from the Company’s distribution center directly to hospitals and medical facilities, where product is ordered in advance of an implantation procedure and a valid purchase order has been received, the Company defers revenue until all programming and stimulation obligations are fulfilled.

Neural interface systems and components

– Each component is a separate distinct performance obligation. The customer obtains control of the individual components upon shipment, and therefore revenue is recognized at that point in time.

Shipping and handling costs

– Costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues.

Warranty

– The Company provides a standard warranty against defects but does

not

provide a general right of return.

Significant

udgments

– The Company’s contracts with customers often include promises to transfer multiple products to a customer. Determining whether the promises are considered distinct performance obligations that should be accounted for separately versus together

may

require significant judgment. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is

not

Development and Engineering Service Revenue

2017

and

2018,

the Company had

one

contract that generated development and engineering services revenue with Aleva Neurotherapeutics S.A. (“Aleva”). Under this contract, the Company is leveraging its neurostimulation technology platform in its performance of services in the development of a DBS system for Aleva to treat Parkinson’s disease and Essential Tremor. If successful, the Company will provide Aleva a royalty bearing distribution license for commercialization by Aleva. The Company concluded that the licenses and the development services were

not

separately distinct given the proprietary nature of the Company’s technology. As such, the combined performance obligation will be recognized over time as costs are incurred. The transaction price includes a fixed fee, payable monthly based on the progress completion in satisfying the performance obligations in that month, royalties for intellectual property licenses on future sales of the licensed technology, and non-cash consideration for the customer commitment to issue the Company a common stock warrant upon CE Mark approval in Europe. When the Company receives consideration in the form of royalties, the Company will estimate the royalty revenue and recognize the royalty revenue when a sale by the customer occurs. The non-cash consideration is a form of variable consideration which must be estimated at contract inception and therefore requires significant judgment. See the “Significant Judgments” section below for further discussion. Services revenue recognized over time was

$1.3

million for the

first

nine

months of

2018.

The Company is still performing services and the client has yet to receive CE Mark approval and therefore, the Company has

not

yet billed or recognized any royalty revenue to date.

Significant

udgments

may

require significant judgment, specifically for development and engineering service revenues. Once the performance obligations are identified, the Company determines the transaction price, which includes estimating the amount of variable consideration to be included in the transaction price, if any. The Company then allocates the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method. The corresponding revenues are recognized as the related performance obligations are satisfied as discussed above. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is

not

may

not

be within the Company’s control.

Transaction Price Allocated to Future Performance Obligations

ASC

606

requires disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have

not

yet been satisfied or are partially satisfied as of the balance sheet date. The Company has elected to apply certain optional exemptions that limit this requirement to exclude contracts which are expected to be satisfied within

one

year as well as the potential royalty license revenue. After considering these exemptions, the Company’s service revenue contract with Aleva is subject to this disclosure for the portion of the transaction price

not

subject to royalties. As of

September 30, 2018,

the estimated revenue expected to be recognized in the future related to this contract totals

$1.1

million and is expected to be recognized over the following

months.

Contract Balances

Timing of revenue recognition

may

differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to invoicing when it has an enforceable right to payment and a contract asset when the Company does

not.

If invoicing occurs prior to revenue recognition, the unearned revenue is presented on the condensed consolidated balance sheet as a contract liability, referred to as deferred revenue. When invoicing occurs after revenue recognition, earned revenue is presented on the condensed consolidated balance sheet as a contract asset, referred to as unbilled receivables. The Company’s standard payment terms are

days.

Revenue recognized during the

first

nine

months of

2018

from amounts included in deferred revenue at the beginning of the period was

$0.1

million, which was related to product sales revenue. There was

revenue recognized during the

first

nine

months of

2018

from performance obligations satisfied or partially satisfied in previous periods. During the

nine

months ended

September 30, 2018,

there were

contract assets reclassified to receivables as a result of the right to the transaction consideration becoming unconditional.

Costs to Obtain and Fulfill a Contract

one

year or less, and therefore, the Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the expected period of benefit of those costs is longer than

one

year. As of

January 1, 2018

and

September 30, 2018,

all contract acquisition costs have been expensed as incurred as the period of benefit is less than

one

year.

Certain NeuroNexus contracts

may

include pre-production activities, design work for custom products. The Company’s policy is to capitalize incremental costs incurred to fulfill its contracts that (i) relate directly to the contract (ii) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs have historically been immaterial. Accordingly, there are

capitalized fulfillment costs as of

January 1, 2018

September 30, 2018.

XML 20 R10.htm IDEA: XBRL DOCUMENT

Note 3 - Intangible Assets

9 Months Ended

Sep. 30, 2018

Intangible Assets Disclosure [Text Block]

3.	INTANGIBLE ASSETS

Intangible assets are comprised of the following (in thousands):

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
At September 30 , 201 8
Technology and patents	$	1,058	$	(729	)	$	329
Customer lists		1,869		(994	)		875
Total intangible assets	$	2,927	$	(1,723	)	$	1,204
At December 3 1 , 201 7
Technology and patents	$	1,058	$	(624	)	$	434
Customer lists		1,869		(875	)		994
Total intangible assets	$	2,927	$	(1,499	)	$	1,428

Aggregate intangible asset amortization expense is classified as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 201 8		September 30, 2017		September 30, 201 8		September 30, 2017
Cost of sales	$	34	$	32	$	104	$	95
Selling, general and administrative expenses		40		39		120		120
Total intangible asset amortization expense	$	74	$	71	$	224	$	215

Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands):

	Estimated Amortization Expense
Remainder of 2018	$	74
2019		293
2020		209
2021		194
2022		108
Thereafter		326
Total estimated amortization expense	$	1,204

XML 21 R11.htm IDEA: XBRL DOCUMENT

Note 4 - Accrued Liabilities

9 Months Ended

Sep. 30, 2018

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

4 .	Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	At
	September 30 , 201 8		December 3 1 , 201 7
Inventory purchases	$	6,418	$	5,825
Research and development		575		164
Warranty reserve		454		195
Regulatory, clinical and quality		426		358
Sales and marketing		379		321
Interest		305		199
Legal		299		358
Deferred revenue		187		335
Sales and use tax		154		145
Information technology		-		114
Operations engagement fee		-		200
Insurance		-		127
Accrued other		780		486
Total accrued liabilities	$	9,977	$	8,827

XML 22 R12.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5 .	EMPLOYEE BENEFIT PLANS

Nuvectra Corporation

2016

Equity Incentive Plan

– The Nuvectra Corporation

2016

Equity Incentive Plan (the

“2016

Equity Plan”) provides that the Compensation and Organization Committee of the Company’s Board of Directors (the “Compensation Committee”)

may

award eligible participants, as it

may

determine from time to time, the following types of awards: stock options, stock appreciation rights, restricted stock, restricted stock units and stock bonuses. Subject to adjustment provisions in the

2016

Equity Plan, the total number of shares of Nuvectra common stock reserved for issuance under the

2016

Equity Plan is

1,975,018.

During the

nine

months ended

September 30, 2018,

the Compensation Committee granted equity awards aggregating

385,386

shares of common stock under the

2016

Equity Plan in the form of both restricted stock units and non-qualified stock options to its directors and certain officers and key employees. Compensation cost related to the

2016

Equity Plan for the

three

and

nine

months ended

September 30, 2018

was approximately

$0.7

million and

$1.9

million, respectively.

During the

nine

months ended

September 30, 2017,

the Compensation Committee granted equity awards aggregating

546,146

shares of common stock under the

2016

Equity Plan in the form of both restricted stock units and non-qualified stock options to its directors and certain officers and key employees. Compensation cost related to the

2016

Equity Plan for the

three

and

nine

months ended

September 30, 2017

was approximately

$0.6

million and

$1.5

million, respectively.

Stock-Based

Compensation

– Certain of the Company’s employees participated in the stock-based compensation programs of Integer and prior to the Spin-off received awards of time-based stock options and time- and performance-based restricted stock units, which typically vest over a

three

-year period and are settled in shares of Integer common stock. The stock-based payment compensation expense includes the compensation expense directly attributable to Nuvectra employees from these Integer equity incentives. In addition, certain incentive awards that were originally granted under an Integer equity incentive award plan adjusted into an incentive award of Nuvectra common stock at the time of the Spin-off. There was

compensation cost related to these equity incentives for the

three

and

nine

months ended

September 30, 2018.

Compensation cost related to these Integer equity incentives was approximately

$0.04

million and

$0.2

million for the

three

and

nine

months ended

September 30, 2017,

respectively.

The components and classification of stock-based compensation expense were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Stock options	$	263	$	227	$	764	$	637
Restricted stock and restricted stock units		391		379		1,144		1,074
Total stock-based compensation expense	$	654	$	606	$	1,908	$	1,711

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Selling, general and administrative expenses	$	591	$	507	$	1,652	$	1,491
Research, development and engineering costs, net		63		99		256		220

Total stock-based compensation expense	$	654	$	606	$	1,908	$	1,711

2016

Equity Plan were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Weighted average fair value	$13.56	$7.85	$9.32	$3.63
Risk-free interest rate	2.81%	2.01%	2.67%	2.06%
Expected volatility	65%	65%	65%	55%
Holding period (in years)	6	6	6	6
Expected dividend yield	—%	—%	—%	—%

The following table summarizes the stock option activity during the

first

nine

months of

2018:

	Number of Time-Vested Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2017		870,820		$	6.78
Granted		238,146			15.40
Exercised		(53,002	)		7.51
Forfeited or expired		(84,247	)		9.17
Outstanding at September 30, 2018		971,717		$	8.64		7.18	$	12,977
Exercisable at September 30, 2018		566,522		$	6.59		5.94	$	8,717

The Company received proceeds totaling approximately

$0.4

million upon the exercise of

53,002

stock options during the

first

nine

months of

2018.

The following table summarizes the restricted stock and restricted stock unit activity during the

first

nine

months of

2018:

	Time-Vested Activity			Weighted Average Fair Value
Non-vested at December 31, 2017		429,005		$	6.88
Granted		147,240			16.83
Vested		(174,959	)		14.58
Forfeited		(76,756	)		8.07
Non-vested at September 30, 2018		324,530		$	11.04

Nuvectra Bonus Plan

– The terms of the Nuvectra Corporation Bonus Plan (the “Bonus Plan”) provide for both annual discretionary cash contribution-based bonuses and cash performance-based bonuses based upon Nuvectra’s company-wide performance measures and, for certain employees, individual performance measures that are set by Nuvectra’s executive management and, in some instances, members of the Board of Directors. Compensation cost related to the Bonus Plan for the

three

and

nine

months ended

September 30, 2018

was approximately

$0.7

million and

$1.9

million, respectively. Compensation cost related to the Bonus Plan for the

three

and

nine

months ended

September 30, 2017

was approximately

$0.1

million and

$1.4

million, respectively.

Defined Contribution Plans

– The Company sponsors a defined contribution Section

401

(k) plan for its employees. The plan provides for the deferral of employee compensation under Section

401

(k) of the Internal Revenue Code of

1986,

as amended (“Section

401

(k)”), and a discretionary match by the Company. For each of the

three

and

nine

months ended

September 30, 2018

this match was

25%

per dollar of participant deferral, up to

of the total compensation for each participant. Direct costs related to this defined contribution plan were

$0.1

million and

$0.2

million for the

three

and

nine

months ended

September 30, 2018,

respectively. Direct costs related to this defined contribution plan were

$0.07

million and

$0.2

million for the

three

and

nine

months ended

September 30, 2017,

respectively.

XML 23 R13.htm IDEA: XBRL DOCUMENT

Note 6 - Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Text Block]

DEBT

Long-term debt is comprised of the following (in thousands):

	At
	September 30 , 201 8			December 3 1 , 201 7
Term loan	$	48,488		$	29,631
Deferred financing fees		(799	)		(962	)
Discount on debt		(3,865	)		(1,994	)
Total debt		43,824			26,675
Less current portion of long-term debt		-			789
Total long-term debt	$	43,824		$	25,886

Credit Facility

– The Company has a credit facility, originally entered into and funded in

March 2016

and subsequently amended in

February 2017

and

February 2018 (

the “Credit Facility”), that consists of term loan facilities in an aggregate maximum principal amount of

$45

million. The term loan facilities are comprised of (i) a

$27.5

million Term Loan A Commitment, which replaced the previously-existing

$27.5

million term loan, (ii) a

$12.5

million Term Loan B Commitment, which was funded in

February 2018,

and (iii) a

million Term Loan C Commitment, which was funded in

September 2018.

The Term Loans bear interest at a floating rate equal to the prime rate plus

4.15%,

with a floor of

8.65%.

September 30, 2018

the interest rate on borrowings under the Term Loans was

9.15%.

The Company pays monthly accrued interest only on the Term Loans through

March 2020

and thereafter the Company will pay monthly accrued interest on the Term Loans plus equal payments of principal for

months. At the maturity of the Term Loans, on

September 1, 2022,

all principal on the Term Loans then outstanding, plus an additional

7.75%

of the funded loan amounts (the “Final Payment”), will be due and payable. This Final Payment has been treated as an in-substance discount and is being amortized using the straight-line method over the life of the Term Loans.

In connection with the

February 2018

amendment to the Credit Facility, Term Loan A and Term Loan B were funded for aggregate gross proceeds of

$40

million, of which

$27.5

million was applied to repay the outstanding principal balance of the previously-existing term loans. The Company determined that it met the criteria to be accounted for as a modification in which any unamortized debt discount is amortized over the remaining term of the exchanged or modified debt. The Company also paid a fee of approximately

$0.8

million in connection with the

February 2018

amendment, which was recorded as a discount on long-term debt to be amortized over the term of Term Loan B. If any Term Loans are prepaid prior to their scheduled maturity, the Company must pay, in addition to the Final Payment, a prepayment fee equal to

$1.3

million plus

of the prepaid principal if paid prior to

February 2019,

of the prepaid principal if paid prior to

February 2020,

and

of the prepaid principal if paid thereafter.

The Term Loans are secured by a

first

priority lien on substantially all of the assets of the Company, including, without limitation, all cash, deposit accounts, accounts receivable, equipment, inventory, contract rights, the ownership interests of its subsidiaries and the Company’s real property located in Blaine, Minnesota, but excluding all intellectual property of the Company (other than accounts receivable and proceeds of intellectual property). The Company’s intellectual property is subject to a negative pledge. The Company must maintain its primary operating and investment accounts with SVB Financial Group,

one

of the Company’s lenders under the Credit Facility, which accounts are subject to customary control agreements.

September 30, 2018,

the Company was in compliance with the financial covenant. The events of default in the Credit Facility are customary for credit facilities of this kind, and include failure to pay interest or principal, breaches of affirmative and negative covenants, a material adverse change occurring, and cross defaults to other material agreements of the Company.

Warrants

– As a condition to the lenders’ initial funding of the initial Term Loan A Commitment on

March 18, 2016

in the amount of

$15

million, the Company issued to each of the

two

lenders, Oxford Finance LLC and SVB Financial Group (successor by assignment to Silicon Valley Bank), a warrant to purchase

56,533

shares of Nuvectra common stock (a total of

113,066

shares) at an exercise price of

$5.97

per share, which warrants are exercisable until

March 18, 2026.

Additionally, the Company incurred

$1.5

million in fees and other direct costs of the debt transaction in connection with the initial funding. The fair value of the warrants on the date of grant totaled approximately

$0.2

million and was recorded as a discount on long-term debt along with the cash issuance costs and as additional paid-in capital in the consolidated balance sheet, as the warrants met the criteria under the relevant accounting standard for treatment as an equity instrument. The related debt discount was being amortized over the term of the Term Loan A Commitment.

As a condition to the lenders’ funding the initial Term Loan B Commitment on

September 28, 2017

in the amount of

$12.5

million, the Company issued to each of the

two

lenders a warrant to purchase

22,844

shares of Nuvectra common stock (a total of

45,688

shares) at an exercise price of

$12.31

per share, which warrants are exercisable until

September 28, 2027.

In connection with the

February 2017

Credit Facility amendment, the Company paid fees of

$0.04

million. The fair value of the warrants on the date of grant totaled approximately

$0.4

million and was recorded as additional paid-in capital in the consolidated balance sheet, as the warrants met the criteria under the relevant accounting standard for treatment as an equity instrument. The related debt discount was being amortized over the term of the Term Loan B Commitment.

As a condition to the lenders’ funding the new Term Loan B Commitment under the

February 2018

amendment to the Credit Facility, the Company issued to the each of the

two

lenders a warrant to purchase

30,245

shares of Nuvectra common stock (a total of

60,490

shares) at an exercise price of

$9.30

per share, which warrants are exercisable until

February 18, 2028.

The fair value of the warrants on the date of grant totaled approximately

$0.5

million and was recorded as additional paid-in capital in the consolidated balance sheet in the

first

quarter of

2018,

as the warrants met the criteria under the relevant accounting standard for treatment as an equity instrument. The related debt discount is being amortized over the term of the Term Loan B Commitment.

As a condition to the lenders’ funding the new Term Loan C Commitment on

September 28, 2018

in the amount of

million, the Company issued to the each of the

two

lenders a warrant to purchase

5,119

shares of Nuvectra common stock (a total of

10,238

shares) at an exercise price of

$21.98

per share, which warrants are exercisable until

September 28, 2028.

The fair value of the warrants on the date of grant totaled approximately

$0.2

million and was recorded as additional paid-in capital in the consolidated balance sheet in the

third

quarter of

2018,

Deferred Financing Fees –

The change in deferred financing fees is as follows (in thousands):

At December 31, 2017	$	962
Additions during the period		7
Amortization during the period		(170	)

At September 30, 2018	$	799

In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”)

2015

03,

“Interest-Imputation of Interest (Subtopic

835

): Simplifying the Presentation of Debt Issuance Costs,” the Company has presented debt issuance costs as a direct deduction from Long-Term Debt in the condensed consolidated balance sheet.

XML 24 R14.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Text Block]

7 .	INCOME TAXES

The Company records a valuation allowance when it is “more likely than

not”

that all or a portion of a deferred tax asset will

not

be realized. Management reviews all available positive and negative evidence, including the Company’s current and past performance, the market environment in which the Company operates, the utilization of past tax credits, length of carry back and carry forward periods, existing contracts or sales backlog that will result in future profits, as well as other factors. The Company maintains a full valuation allowance on all of the net deferred tax assets for the periods presented. Until an appropriate level of profitability is sustained, the Company expects to continue to record a full valuation allowance on future tax benefits.

Pursuant to the terms of the tax matters agreement entered into with Integer at the time of the Spin-off, until

March 14, 2018,

the Company was prohibited from (i) causing or permitting to occur any transaction or series of transactions, subject to certain exceptions provided under the U.S. federal income tax rules, in connection with which

one

or more persons would (directly or indirectly) acquire an interest in its capital stock that, when combined with any other acquisition of an interest in its capital stock that occurs after the Spin-off, comprises

30%

or more of the value or the total combined voting power of all interests that are treated as outstanding equity of Nuvectra for U.S. federal income tax purposes immediately after such transaction or, in the case of a series of related transactions, immediately after any transaction in such series; (ii) transferring, selling or otherwise disposing of

35%

or more of its gross assets if such transfer, sale or other disposition would violate the rules and regulations of the Internal Revenue Service; (iii) liquidating its business or (iv) ceasing to maintain its active business. The tax matters agreement terminated in full on

March 14, 2018.

XML 25 R15.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Text Block]

8 .	COMMITMENTS AND CONTINGENCIES

Litigation

–

Periodically the Company is a party to various legal actions, both threatened and filed, arising in the normal course of business. While the Company does

not

expect that the ultimate resolution of any ordinary course pending actions will have a material effect on its results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. As such, there can be

assurance that any pending or threatened ordinary course legal action, which the Company currently believes to be immaterial, does

not

become material in the future.

September 19, 2017,

Boston Scientific Corporation filed a lawsuit in district court in Suffolk County, Massachusetts, against the Company and

three

former Boston Scientific employees hired by the Company, alleging tortious interference of contract on the part of the Company and breaches of contract related to non-solicitation and confidentiality by Boston Scientific’s former employees. The Company is currently engaging in confidential settlement discussions with Boston Scientific but does

not

expect any such settlement, if achieved, to have a material adverse impact to the Company. In the event the Company and Boston Scientific are unable to reach a mutually agreed upon settlement, the Company intends to vigorously defend against the allegations.

Purchase Commitments

– Contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. The Company’s purchase orders are normally based on its current manufacturing or other operational needs. Inventory to be purchased by Nuvectra in

2018

under its supply agreements is subject to certain minimum order quantity requirements. As of

September 30, 2018,

the Company had

material commitments to purchase capital assets; however, planned capital expenditures for the remainder of

2018

are estimated at approximately

$0.5

million and will primarily be financed by existing cash and cash equivalents. The Company also enters into contracts for outsourced services; however, the contracts generally contain provisions allowing for cancellation without significant penalty.

Operating Leases

– The Company is party to various operating lease agreements for office and laboratory facilities. In the

first

quarter of

2018,

the Company amended

one

of its office leases to extend the expiration date until

March 2023.

Minimum future estimated annual operating lease payments as of

September 30, 2018

were expected to be (in thousands):

2018 (remaining 3 months)	$	178
2019		720
2020		732
2021		745
2022		619
Thereafter		85
Total estimated operating lease payments	$	3,079

XML 26 R16.htm IDEA: XBRL DOCUMENT

Note 9 - Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Text Block]

9 .	EARNINGS (LOSS) PER SHARE

potentially dilutive securities outstanding for any of the periods presented.

The following table illustrates the calculation of basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Basic net loss per share:
Net loss	$	(12,967	)	$	(11,638	)	$	(35,278	)	$	(35,998	)
Weighted average common shares outstanding		14,840			10,697			13,852			10,497
Basic net loss per share	$	(0.87	)	$	(1.09	)	$	(2.55	)	$	(3.43	)
Diluted net loss per share:
Net loss	$	(12,967	)	$	(11,638	)	$	(35,278	)	$	(35,998	)
Weighted average common shares outstanding		14,840			10,697			13,852			10,497
Dilutive stock options, restricted stock and restricted stock units		—			—			—			—
Weighted average common shares outstanding – assuming dilution		14,840			10,697			13,852			10,497
Diluted net loss per share	$	(0.87	)	$	(1.09	)	$	(2.55	)	$	(3.43	)
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive		1,469			1,549			1,469			1,549

XML 27 R17.htm IDEA: XBRL DOCUMENT

Note 10 - Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. As of

September 30, 2018,

the fair value of the Company’s variable rate long-term debt approximates its carrying value and is categorized in Level

of the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period).

The Company categorizes its warrants measured at fair value on a recurring basis in Level

of the fair value hierarchy. The fair value of the warrants classified as liability awards was determined by utilizing a Monte Carlo simulation model, which projects the value of Nuvectra stock versus its peer group under numerous scenarios, and determines the value of the award based upon the present value of these projected outcomes. The estimated fair value of the warrants was presented as a long-term asset and a liability in the condensed consolidated balance sheet. The estimated fair value of the warrant liability was revalued on a periodic basis and any resulting increases or decreases in the estimated fair value was recorded as an adjustment to earnings. The table below presents a summary of changes in the fair value of the Company’s Level

liability warrants during the

first

nine

months of

2018

(in thousands):

Balance at December 31, 2017 – initial Term Loan C (new Term Loan B) Commitment warrant	$	400
Loss on fair value of warrant liability – initial Term Loan C (new Term Loan B) Commitment warrant		55
Reclassification of warrant liability to equity upon issuance of warrants – initial Term Loan C (new Term Loan B) Commitment warrant		(455	)
Fair value of warrant liability issued in first quarter 2018 – new Term Loan C Commitment warrant		109
Loss on fair value of warrant liability – new Term Loan C Commitment warrant		57
Reclassification of warrant liability to equity upon issuance of warrants in third quarter 2018 – new Term Loan C Commitment warrant		(166	)

At September 30, 2018	$	-

As discussed in Note

“Debt,” in connection with the issuance of warrants in

February 2018,

the fair value of the warrant liability was reclassified to equity. Additionally, in

February 2018

the Company recognized a warrant liability of

$0.1

million related to the new Term Loan C Commitment. In connection with the issuance of warrants in

September 2018,

the fair value of the warrant liability related to the new Term Loan C Commitment was reclassified to equity.

three

months or less. Unrealized gains or losses for the periods presented are included in other comprehensive loss.

not

active to measure fair value. When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. As of

September 30, 2018,

the fair market value of marketable securities was approximately

$93.8

million, all of which had original maturities of

three

months or less.

Marketable securities, measured at fair value, by level within the fair value hierarchy were as follows (in thousands):

		September 30 , 201 8
	Fair Value Hierarchy	Cost		Unrealized Loss		Fair Value
Cash	Level 1	$	78,828	$	-	$	78,828
Government	Level 1		1,502		-		1,502
Financial	Level 2		8,654		-		8,654
Industrial	Level 2		4,800		-		4,800
Total		$	93,784	$	-	$	93,784

		December 3 1 , 201 7
	Fair Value Hierarchy	Cost		Unrealized Loss			Fair Value
Cash	Level 1	$	7,336	$	-		$	7,336
Government	Level 1		1,499		-			1,499
Financial	Level 2		3,799		(1	)		3,798
Industrial	Level 2		8,649		-			8,649
Total		$	21,283	$	(1	)	$	21,282

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Long-lived Assets

– The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill, for potential impairment whenever certain indicators are present as described in Note

“Summary of Significant Accounting Policies.” During the

first

nine

months of

2018

and

2017,

impairment charges were recorded related to the Company’s long-lived assets.

Goodwill

– Goodwill recorded is

not

amortized but is periodically tested for impairment. The Company assesses goodwill for impairment on

December 31,

or more frequently if certain events occur as described in Note

“Summary of Significant Accounting Policies.” During the

first

nine

months of

2018

and

2017,

impairment charges were recorded related to the Company’s goodwill.

Warrants

– In order to determine the fair value of the warrants classified as equity awards, the Company used a Monte Carlo simulation model. The risk-free interest rate represents the

-Year U.S. Treasury rate as of the issuance date. The expected volatility assumption is based on historical volatilities for publicly traded stock of comparable companies.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

XML 28 R18.htm IDEA: XBRL DOCUMENT

Note 11 - Business Segment, Geographic and Concentration Risk Information

9 Months Ended

Sep. 30, 2018

Segment Reporting, Geographical, and Concentration Risk Disclosure [Text Block]

BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION

The Company has

two

reportable segments and

two

reporting units, consisting of Nuvectra and NeuroNexus.

Nuvectra is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. Algovita is the Company’s

first

commercial offering and is approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra’s innovative technology platform also has capabilities under development to support other neurological indications such as SNM for the treatment of overactive bladder and DBS for the treatment of Parkinson’s disease and Essential Tremor. Revenue includes development and engineering service fees and sales from the release of Algovita in the United States and Europe. Future revenues of Nuvectra are expected to come primarily from sales of Algovita, particularly after expansion of its launch commercially in the United States, and, subject to FDA approval, Virtis, the

second

application of the Company’s neurostimulation technology platform and its

first

product for the SNM market.

	Three Months Ended				Nine Months Ended
Product line sales:	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Algovita	$	12,460	$	6,302	$	33,050	$	15,180
Neural interface components and systems		1,353		1,129		3,636		3,504
Development and engineering service		403		186		1,253		1,196

Total sales	$	14,216	$	7,617	$	37,939	$	19,880

	Three Months Ended				Nine Months Ended
Business segment sales:	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Nuvectra	$	12,863	$	6,488	$	34,303	$	16,376
NeuroNexus		1,353		1,129		3,636		3,504

Total sales	$	14,216	$	7,617	$	37,939	$	19,880

	Three Months Ended						Nine Months Ended
Segment (loss) income from operations:	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Nuvectra	$	(12,164	)	$	(11,092	)	$	(32,851	)	$	(34,510	)
NeuroNexus		177			64			444			210
Total segment (loss) income from operations		(11,987	)		(11,028	)		(32,407	)		(34,300	)
Unallocated operating expenses		—			—			—			—
Operating loss		(11,987	)		(11,028	)		(32,407	)		(34,300	)
Unallocated other expense, net		(997	)		(601	)		(2,860	)		(1,689	)
Loss before provision for income taxes	$	(12,984	)	$	(11,629	)	$	(35,267	)	$	(35,989	)

All of the Company’s long-lived tangible assets are located in the United States.

XML 29 R19.htm IDEA: XBRL DOCUMENT

Note 12 - Related Party Transactions

9 Months Ended

Sep. 30, 2018

related party transactions

March 14, 2016,

Integer completed the Spin-off, at which time the Company became a separate public company. The Company entered into, or amended, various agreements with Integer to effect the Spin-off and to provide a framework for the Company’s relationship with Integer after the Spin-off including a supply agreement, license agreements, a separation and distribution agreement, a tax matters agreement, a transition services agreement and an employee matters agreement, which provided for the allocation between Nuvectra and Integer of assets, employees, liabilities and obligations (including PP&E, employee benefits, and tax-related assets and liabilities) attributable to the Company’s business for the period prior to, at, and after the Spin-off. The tax matters agreement, the transition services agreement and the employee matters agreement have expired and are

longer in effect.

Employee Benefit Plans

– Prior to the Spin-off, certain of the Company’s employees participated in various Integer stock-based compensation plans. Compensation expense allocated to Nuvectra for these plans from Integer was based upon the costs directly attributable to Nuvectra employees. See Note

“Employee Benefit Plans” for additional information.

Supply Agreement

– The Company has a supply agreement with Integer pursuant to which Integer manufactures Algovita and certain of its components. Total charges incurred under this supply agreement are included in cost of sales.

XML 30 R20.htm IDEA: XBRL DOCUMENT

Note 13 - Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

RECENTLY ISSUED ACCOUNTING STANDARDS

In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB to determine the potential impact they

may

have on the Company’s condensed consolidated financial statements. Based upon this review, except as noted below, management does

not

expect any of the recently issued accounting pronouncements, which have

not

already been adopted, to have a material impact on the Company’s condensed consolidated financial statements.

Recently Adopted

2018

May 2017,

the FASB issued ASU

2017

09,

Compensation-Stock Compensation (Topic

718

): Scope of Modification Accounting

. ASU

2017

clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under ASU

2017

09,

an entity will

not

apply modification accounting to a share-based payment award if the award’s fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU

2017

will be applied prospectively to awards modified on or after the adoption date. The adoption of ASU

2017

did

not

have a material impact on the Company’s condensed consolidated financial statements.

January 2017,

the FASB issued ASU

2017

01,

Business Combinations

(Topic

805

Clarifying the Definition of a Business

. ASU

2017

provides a screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) does

not

constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is

not

a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is

not

met, the amendments in ASU

2017

(i) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (ii) remove the evaluation of whether a market participant could replace missing elements. The adoption of ASU

2017

did

not

have a material impact on the Company’s condensed consolidated financial statements.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments

. This update provides clarification regarding how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU

2016

addresses

eight

specific cash flow issues with the objective of reducing the existing diversity in practice. The adoption of ASU

2016

did

not

have a material impact on the Company’s condensed consolidated financial statements.

January 2016,

the FASB issued ASU

2016

01,

Recognition and Measurement of Financial Assets and Financial Liabilities

, which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The adoption of ASU

2016

did

not

have a material impact on the Company’s condensed consolidated financial statements.

May 2014,

the FASB issued ASC Update

No.

2014

09,

Revenue from Contracts with Customers

(Topic

606

)

, which has been subsequently updated. ASU

2014

provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies using U.S. GAAP and International Financial Reporting Standards. ASC

606

outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle requires entities to recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration an entity expects to be entitled to in exchange for those goods or services. The new standard also includes criteria for the capitalization and amortization of certain contract acquisition and fulfillment costs. The Company adopted ASU

2014

and its related amendments effective

January 1, 2018

under the modified retrospective method and will only apply this method to contracts that are

not

completed as of the date of adoption. The modified retrospective method results in a cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings at the date of initial application for the impact to changes in the timing and amount of revenue recognition as well as the timing of capitalization and amortization of certain contract costs. With the exception of the increased disclosure requirements, the adoption of ASU

2014

did

not

have a material impact on the Company’s consolidated financial statements as of the date of adoption,

January 1, 2018

and as of and for the

nine

months ended

September 30, 2018.

Please see Note

“Revenue from Contracts with Customers,” for the Company's updated policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract.

Not

Yet Adopted

August 2018,

the FASB issued ASU

2018

15,

Intangibles-Goodwill and Other-Internal-Use Software (Subtopic

350

): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.

ASU

2018

aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU is effective for fiscal years beginning after

December 15, 2019,

and interim periods within those fiscal years. Early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements.

August 2018,

the FASB issued ASU

2018

13,

Fair Value Measurement (Topic

820

): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement

, which modifies the disclosure requirements on fair value measurements. ASU

2018

is effective in the

first

quarter of fiscal

2020,

and earlier adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments - Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. The purpose of ASU

2016

is to replace the current incurred loss impairment methodology, for financial assets measured at amortized cost, with a methodology that reflects expected credit losses. It also requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. ASU

2016

is effective for annual periods beginning after

December 15, 2019,

including interim periods within those annual periods. Early adoption is permitted for annual periods beginning after

December 15, 2018.

The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases

(Topic

842

)

in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous U.S. GAAP. ASU

2016

requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. In

July 2018,

the FASB issued ASU

2018

11,

Leases (Topic

842

) Targeted Improvements

, which provides an additional transition method and practical expedient that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. ASU

2016

is effective for fiscal years beginning after

December 15, 2018 (

including interim periods within those periods), using a modified retrospective approach, and early adoption is permitted. The Company intends to adopt the requirements of the new standard effective

January 1, 2019,

via a cumulative-effect adjustment without restating prior periods.

The Company has preliminarily elected the package of practical expedients that permits the Company

not

to reassess: (i) whether expired or existing contracts contain a lease under the new standard; (ii) the lease classification for expired or existing leases; and (iii) whether previously-capitalized initial direct costs would qualify for capitalization under the new standard. The Company also preliminarily made the following policy elections: (i) to use the hindsight practical expedient to determine lease term and when assessing existing right of use assets for impairment; (ii)

not

to recognize right-of-use assets or lease liabilities for leases with a term of

months or less, as permitted by the short-term lease practical expedient in the standard; and (iii)

not

to apply the practical expedient that permits a lessee to account for lease and non-lease components in a contract as a single lease component (rather than separate lease and non-lease components) and, accordingly, the Company will account for these components separately.

“Commitments and Contingencies” for additional information.

The Company is currently in the process of evaluating the impact of adoption of the ASU on its condensed consolidated financial statements and has

not

yet determined the impact from adoption of this new accounting pronouncement on its condensed consolidated financial statements. However, adoption of this standard will result in the recognition of right-of-use assets and lease liabilities in the Company’s condensed consolidated balance sheet for those leases classified as operating leases under current U.S. GAAP.

XML 31 R21.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Nature of Operations [Policy Text Block]	Nature of Operations – Nuvectra Corporation, together with its wholly-owned subsidiaries (i) Algostim, LLC (“Algostim”), (ii) PelviStim LLC (“PelviStim”), and (iii) NeuroNexus Technologies, Inc. (“NeuroNexus”) (collectively “Nuvectra” or the “Company”), is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. The Algovita® Spinal Cord Stimulation (“SCS”) System (“Algovita”) is the Company’s first commercial offering and is Conformité Européene (“CE”) marked and United States Food & Drug Administration (“FDA”) approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra’s innovative technology platform also has capabilities under development to support other neurological indications such as sacral neuromodulation (“SNM”) for the treatment of overactive bladder and deep brain stimulation (“DBS”) for the treatment of Parkinson’s disease and Essential Tremor. In addition, the Company’s NeuroNexus subsidiary designs, manufactures and markets neural-interface technologies for the neuroscience clinical research market. In March 2016, the Company was formed as a separate public company as a result of a spin-off (the “Spin-off”) from Integer Holdings Corporation (“Integer”).
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting ) and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Nuvectra for the periods presented.
Liquidity and Capital Resources [Policy Text Block]	Liquidity and Capital Resources – The Company has incurred significant net losses and negative cash flows from operations since inception and expects to incur additional net losses for the foreseeable future. Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the first and third quarters of 2018, credit facility draw-downs, and cash generated from sales, should meet its cash needs for at least the next twelve months. On September 14, 2018, pursuant to a second underwritten shelf takedown, with Piper Jaffray & Co. serving as representative of the several underwriters, the Company sold 3,248,750 shares of its common stock and received net proceeds of approximately $64.6 million, after deducting underwriting discounts and commissions of approximately $4.1 million and other expenses of approximately $0.3 million. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, sale of non-strategic assets, or other sources, such as strategic partnerships. The Company has elected and may continue to elect to make near-term decisions, including engaging in various capital generating initiatives, to provide additional liquidity. If the Company is unable to raise additional funds when needed, it may be required to delay, reduce, or terminate some or all of its development plans. The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, there can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of sales and expenses during the reporting period. Actual results could differ materially from those estimates. Significant items subject to such estimates and assumptions include inventories, tangible and intangible asset valuations, revenue, stock-based compensation, warrants, certain accruals, and income tax accounts.
Inventory, Policy [Policy Text Block]	Inventories – The value of inventories, comprised solely of finished goods, are stated at the lesser of net realizable value or cost, determined using the first -in, first -out (“FIFO”) method. To value inventory, management must estimate excess or obsolete inventory, as well as inventory that is not of saleable quality. This valuation involves an inherent level of risk and uncertainty due to unpredictability of trends in the industry and customer demand for the Company’s products. In assessing the ultimate realization of inventories, management must make judgments as to future demand requirements and compare that with the current or committed inventory levels. Reserve requirements generally increase as demand decreases due to market conditions and technological and product life-cycle changes. Write-downs of excess and obsolete inventories were $0.4 million and $0.1 million in the third quarter of 2018 and 2017, respectively. Future events and variations in valuation methods or assumptions may cause significant fluctuations in this estimate and could have a material impact on the Company’s results.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]	Goodwill Valuation – The Company tests its goodwill balances for impairment on December 31, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. When evaluating goodwill for impairment, the Company compares the fair value of a reporting unit with its carrying amount. The Company recognizes an impairment charge for the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test is used to identify goodwill impairment and measure the amount for a goodwill impairment to be recognized, if any. In addition, the Company also performs impairment tests of its other long-lived assets in accordance with ASC 360 - 10, Impairment and Disposal of Long-Lived Assets , when indicators of impairment exist. The Company completed its annual impairment test of goodwill as of December 31, 2017 and the Company determined that it was more likely than not that the fair value of both reporting units exceeded their carrying value. The Company did not identify any indicators of impairment that required an impairment test in the first nine months of 2018 for its Nuvectra reporting unit. The Company did not identify any indicators of impairment that required an impairment test in the second or third quarters of 2018 for its NeuroNexus reporting unit. In the first quarter of 2018, the Company evaluated strategic alternatives with respect to its NeuroNexus reporting unit which triggered an interim impairment test. Upon completing the goodwill impairment test for NeuroNexus, the Company determined that its fair value exceeded its carrying value.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]	Impairment of Long-Lived Assets – The Company assesses the impairment of definite-lived long-lived assets or asset groups when events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that are considered in deciding when to perform an impairment review include: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group; or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. The projected cash flows for each asset or asset group considers multiple factors, including current revenue from existing customers, proceeds from the sale of the asset or asset group and expected profit margins giving consideration to historical and expected margins. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. The Company did not identify any indicators of impairment in the first nine months of 2018 for the Nuvectra asset group or in the second or third quarters of 2018 for the NeuroNexus asset group; however, as noted above, the Company performed an interim impairment test in the first quarter of 2018 for the NeuroNexus asset group and determined the undiscounted cash flows exceeded the carrying amounts of long-lived assets.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk – Financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable owed to the Company by its customers. The Company performs on-going credit evaluations of its customers. No customers individually accounted for more than 10% of the Company’s consolidated revenues in the nine months ended September 30, 2018 or 2017. No customers individually accounted for more than 10% of the Company’s accounts receivable at September 30, 2018 or December 31, 2017. Additionally, the Company maintains cash deposits with major banks, which from time to time may exceed insured limits. The Company performs on-going credit evaluations of its banks. See Note 11 “Business Segments, Geographic and Concentration Risk Information” for additional information.
Standard Product Warranty, Policy [Policy Text Block]	Warranty Reserve – The Company offers a warranty on certain of its products and maintains a warranty reserve, as a component of other current liabilities, for any potential claims. The Company estimates its warranty reserve based upon an analysis of all identified or expected claims and an estimate of the cost to resolve those claims. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and differences between actual and expected warranty costs per claim. The Company periodically assesses the adequacy of its warranty liability and adjusts the amount as necessary.
Subsequent Events, Policy [Policy Text Block]	Subsequent Events – The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

XML 32 R22.htm IDEA: XBRL DOCUMENT

Note 3 - Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
At September 30 , 201 8
Technology and patents	$	1,058	$	(729	)	$	329
Customer lists		1,869		(994	)		875
Total intangible assets	$	2,927	$	(1,723	)	$	1,204
At December 3 1 , 201 7
Technology and patents	$	1,058	$	(624	)	$	434
Customer lists		1,869		(875	)		994
Total intangible assets	$	2,927	$	(1,499	)	$	1,428

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30, 201 8		September 30, 2017		September 30, 201 8		September 30, 2017
Cost of sales	$	34	$	32	$	104	$	95
Selling, general and administrative expenses		40		39		120		120
Total intangible asset amortization expense	$	74	$	71	$	224	$	215

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

	Estimated Amortization Expense
Remainder of 2018	$	74
2019		293
2020		209
2021		194
2022		108
Thereafter		326
Total estimated amortization expense	$	1,204

XML 33 R23.htm IDEA: XBRL DOCUMENT

Note 4 - Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Accrued Liabilities [Table Text Block]

	At
	September 30 , 201 8		December 3 1 , 201 7
Inventory purchases	$	6,418	$	5,825
Research and development		575		164
Warranty reserve		454		195
Regulatory, clinical and quality		426		358
Sales and marketing		379		321
Interest		305		199
Legal		299		358
Deferred revenue		187		335
Sales and use tax		154		145
Information technology		-		114
Operations engagement fee		-		200
Insurance		-		127
Accrued other		780		486
Total accrued liabilities	$	9,977	$	8,827

XML 34 R24.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Stock options	$	263	$	227	$	764	$	637
Restricted stock and restricted stock units		391		379		1,144		1,074
Total stock-based compensation expense	$	654	$	606	$	1,908	$	1,711

	Three Months Ended				Nine Months Ended
	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Selling, general and administrative expenses	$	591	$	507	$	1,652	$	1,491
Research, development and engineering costs, net		63		99		256		220

Total stock-based compensation expense	$	654	$	606	$	1,908	$	1,711

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three Months Ended		Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Weighted average fair value	$13.56	$7.85	$9.32	$3.63
Risk-free interest rate	2.81%	2.01%	2.67%	2.06%
Expected volatility	65%	65%	65%	55%
Holding period (in years)	6	6	6	6
Expected dividend yield	—%	—%	—%	—%

Restricted Stock and RSU's [Member]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Time-Vested Activity			Weighted Average Fair Value
Non-vested at December 31, 2017		429,005		$	6.88
Granted		147,240			16.83
Vested		(174,959	)		14.58
Forfeited		(76,756	)		8.07
Non-vested at September 30, 2018		324,530		$	11.04

Employee Stock Option [Member]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

	Number of Time-Vested Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2017		870,820		$	6.78
Granted		238,146			15.40
Exercised		(53,002	)		7.51
Forfeited or expired		(84,247	)		9.17
Outstanding at September 30, 2018		971,717		$	8.64		7.18	$	12,977
Exercisable at September 30, 2018		566,522		$	6.59		5.94	$	8,717

XML 35 R25.htm IDEA: XBRL DOCUMENT

Note 6 - Debt (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Long-term Debt Instruments [Table Text Block]

	At
	September 30 , 201 8			December 3 1 , 201 7
Term loan	$	48,488		$	29,631
Deferred financing fees		(799	)		(962	)
Discount on debt		(3,865	)		(1,994	)
Total debt		43,824			26,675
Less current portion of long-term debt		-			789
Total long-term debt	$	43,824		$	25,886

Schedule of Debt Issuance Costs [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 15%; margin-left: 36pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 82%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At December 31, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">962</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Additions during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amortization during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(170</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At September 30, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">799</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

XML 36 R26.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

2018 (remaining 3 months)	$	178
2019		720
2020		732
2021		745
2022		619
Thereafter		85
Total estimated operating lease payments	$	3,079

XML 37 R27.htm IDEA: XBRL DOCUMENT

Note 9 - Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Basic net loss per share:
Net loss	$	(12,967	)	$	(11,638	)	$	(35,278	)	$	(35,998	)
Weighted average common shares outstanding		14,840			10,697			13,852			10,497
Basic net loss per share	$	(0.87	)	$	(1.09	)	$	(2.55	)	$	(3.43	)
Diluted net loss per share:
Net loss	$	(12,967	)	$	(11,638	)	$	(35,278	)	$	(35,998	)
Weighted average common shares outstanding		14,840			10,697			13,852			10,497
Dilutive stock options, restricted stock and restricted stock units		—			—			—			—
Weighted average common shares outstanding – assuming dilution		14,840			10,697			13,852			10,497
Diluted net loss per share	$	(0.87	)	$	(1.09	)	$	(2.55	)	$	(3.43	)
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive		1,469			1,549			1,469			1,549

XML 38 R28.htm IDEA: XBRL DOCUMENT

Note 10 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Balance at December 31, 2017 – initial Term Loan C (new Term Loan B) Commitment warrant	$	400
Loss on fair value of warrant liability – initial Term Loan C (new Term Loan B) Commitment warrant		55
Reclassification of warrant liability to equity upon issuance of warrants – initial Term Loan C (new Term Loan B) Commitment warrant		(455	)
Fair value of warrant liability issued in first quarter 2018 – new Term Loan C Commitment warrant		109
Loss on fair value of warrant liability – new Term Loan C Commitment warrant		57
Reclassification of warrant liability to equity upon issuance of warrants in third quarter 2018 – new Term Loan C Commitment warrant		(166	)

At September 30, 2018	$	-

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

		September 30 , 201 8
	Fair Value Hierarchy	Cost		Unrealized Loss		Fair Value
Cash	Level 1	$	78,828	$	-	$	78,828
Government	Level 1		1,502		-		1,502
Financial	Level 2		8,654		-		8,654
Industrial	Level 2		4,800		-		4,800
Total		$	93,784	$	-	$	93,784

		December 3 1 , 201 7
	Fair Value Hierarchy	Cost		Unrealized Loss			Fair Value
Cash	Level 1	$	7,336	$	-		$	7,336
Government	Level 1		1,499		-			1,499
Financial	Level 2		3,799		(1	)		3,798
Industrial	Level 2		8,649		-			8,649
Total		$	21,283	$	(1	)	$	21,282

XML 39 R29.htm IDEA: XBRL DOCUMENT

Note 11 - Business Segment, Geographic and Concentration Risk Information (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from External Customers by Products and Services [Table Text Block]

	Three Months Ended				Nine Months Ended
Product line sales:	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Algovita	$	12,460	$	6,302	$	33,050	$	15,180
Neural interface components and systems		1,353		1,129		3,636		3,504
Development and engineering service		403		186		1,253		1,196

Total sales	$	14,216	$	7,617	$	37,939	$	19,880

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended				Nine Months Ended
Business segment sales:	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Nuvectra	$	12,863	$	6,488	$	34,303	$	16,376
NeuroNexus		1,353		1,129		3,636		3,504

Total sales	$	14,216	$	7,617	$	37,939	$	19,880

	Three Months Ended						Nine Months Ended
Segment (loss) income from operations:	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Nuvectra	$	(12,164	)	$	(11,092	)	$	(32,851	)	$	(34,510	)
NeuroNexus		177			64			444			210
Total segment (loss) income from operations		(11,987	)		(11,028	)		(32,407	)		(34,300	)
Unallocated operating expenses		—			—			—			—
Operating loss		(11,987	)		(11,028	)		(32,407	)		(34,300	)
Unallocated other expense, net		(997	)		(601	)		(2,860	)		(1,689	)
Loss before provision for income taxes	$	(12,984	)	$	(11,629	)	$	(35,267	)	$	(35,989	)

XML 40 R30.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies (Details Textual) xbrli-pure in Thousands, $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 14, 2018 USD ($) shares	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017
Proceeds from Issuance of Common Stock				$ 88,816
Inventory Write-down		$ 400	$ 100	753	$ 349
Asset Impairment Charges, Total				$ 0
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Number of Major Customers				0	0
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Number of Major Customers				0		0
Second Underwritten Shelf Takedown [Member]
Stock Issued During Period, Shares, New Issues \| shares	3,248,750
Proceeds from Issuance of Common Stock	$ 64,600
Underwriting Discounts and Commissions	4,100
Payments of Other Issuance Costs	$ 300

XML 41 R31.htm IDEA: XBRL DOCUMENT

Note 2 - Revenue From Contracts With Customers (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Revenue from Contract with Customer, Including Assessed Tax	$ 14,216	$ 7,617	$ 37,939	$ 19,880
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year		1 year
Revenue, Remaining Performance Obligation, Amount	$ 1,100		$ 1,100
Contract with Customer, Performance Obligation Satisfied in Previous Period			0
Contract with Customer, Asset, Reclassified to Receivable			0
Capitalized Contract Cost, Net, Total	$ 0		$ 0		$ 0
Minimum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	180 days		180 days
Maximum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year		1 year
Product [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 13,813	7,431	$ 36,686	18,684
Contract with Customer, Liability, Revenue Recognized			100
Service [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 403	$ 186	$ 1,253	$ 1,196

XML 42 R32.htm IDEA: XBRL DOCUMENT

Note 3 - Intangible Assets - Amortizing Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Gross carrying amount	$ 2,927	$ 2,927
Accumulated amortization	(1,723)	(1,499)
Net carrying amount	1,204	1,428
Patented Technology [Member]
Gross carrying amount	1,058	1,058
Accumulated amortization	(729)	(624)
Net carrying amount	329	434
Customer Lists [Member]
Gross carrying amount	1,869	1,869
Accumulated amortization	(994)	(875)
Net carrying amount	$ 875	$ 994

XML 43 R33.htm IDEA: XBRL DOCUMENT

Note 3 - Intangible Assets - Aggregate Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Intangible asset amortization expense	$ 74	$ 71	$ 224	$ 215
Cost of Sales [Member]
Intangible asset amortization expense	34	32	104	95
Selling, General and Administrative Expenses [Member]
Intangible asset amortization expense	$ 40	$ 39	$ 120	$ 120

XML 44 R34.htm IDEA: XBRL DOCUMENT

Note 3 - Intangible Assets - Future Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Remainder of 2018	$ 74
2019	293
2020	209
2021	194
2022	108
Thereafter	326
Total estimated amortization expense	$ 1,204	$ 1,428

XML 45 R35.htm IDEA: XBRL DOCUMENT

Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory purchases	$ 6,418	$ 5,825
Research and development	575	164
Warranty reserve	454	195
Regulatory, clinical and quality	426	358
Sales and marketing	379	321
Interest	305	199
Legal	299	358
Deferred revenue	187	335
Sales and use tax	154	145
Information technology		114
Operations engagement fee		200
Insurance		127
Accrued other	780	486
Total accrued liabilities	$ 9,977	$ 8,827

XML 46 R36.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Proceeds from Stock Options Exercised			$ 397	$ 1,322
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			53,002
401K Plan [Member]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	25.00%		25.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	6.00%		6.00%
Defined Contribution Plan, Cost	$ 100	$ 70	$ 200	200
Bonus Plan [Member]
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 700	100	$ 1,900	1,400
Nuvectra Corporation 2016 Equity Incentive Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance	1,975,018		1,975,018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total	$ 700	600	$ 1,900	$ 1,500
Nuvectra Corporation 2016 Equity Incentive Plan [Member] \| Restricted Stock Units and Non-Qualified Stock Options [Member] \| Directors, Certain Officers and Key Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options and Options, Grants in Period			385,386	546,146
Integer Equity Incentives Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total	$ 0	$ 40	$ 0	$ 200
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years

XML 47 R37.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans - Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allocated share-based compensation expense	$ 654	$ 606	$ 1,908	$ 1,711
Selling, General and Administrative Expenses [Member]
Allocated share-based compensation expense	591	507	1,652	1,491
Research and Development Expense [Member]
Allocated share-based compensation expense	63	99	256	220
Employee Stock Option [Member]
Allocated share-based compensation expense	263	227	764	637
Restricted Stock and RSU's [Member]
Allocated share-based compensation expense	$ 391	$ 379	$ 1,144	$ 1,074

XML 48 R38.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans - Weighted Average Fair Value Assumption Used to Values Options Granted (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Weighted average fair value (in dollars per share)	$ 13.56	$ 7.85	$ 9.32	$ 3.63
Risk-free interest rate	2.81%	2.01%	2.67%	2.06%
Expected volatility	65.00%	65.00%	65.00%	55.00%
Holding period (in years) (Year)	6 years	6 years	6 years	6 years
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

XML 49 R39.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares
Exercised, number of options (in shares)	(53,002)
Employee Stock Option [Member]
Outstanding, number of options (in shares)	870,820
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 6.78
Granted, number of options (in shares)	238,146
Granted, weighted average exercise price (in dollars per share) \| $ / shares	$ 15.40
Exercised, number of options (in shares)	(53,002)
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	$ 7.51
Forfeited or expired, number of options (in shares)	(84,247)
Forfeited or expired, weighted average exercise price (in dollars per share) \| $ / shares	$ 9.17
Outstanding, number of options (in shares)	971,717
Outstanding, weighted average exercise price (in dollars per share) \| $ / shares	$ 8.64
Outstanding, weighted average remaining contractual life (Year)	7 years 65 days
Outstanding, aggregate intrinsic value \| $	$ 12,977
Exercisable, number of options (in shares)	566,522
Exercisable, weighted average exercise price (in dollars per share) \| $ / shares	$ 6.59
Exercisable, weighted average remaining contractual life (Year)	5 years 343 days
Exercisable, aggregate intrinsic value \| $	$ 8,717

XML 50 R40.htm IDEA: XBRL DOCUMENT

Note 5 - Employee Benefit Plans - Summary Restricted Stock Unit Activity (Details) - Restricted Stock and RSU's [Member]	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Nonvested (in shares) \| shares	429,005
Nonvested (in dollars per share) \| $ / shares	$ 6.88
Granted (in shares) \| shares	147,240
Granted (in dollars per share) \| $ / shares	$ 16.83
Vested (in shares) \| shares	(174,959)
Vested (in dollars per share) \| $ / shares	$ 14.58
Forfeited (in shares) \| shares	(76,756)
Forfeited (in dollars per share) \| $ / shares	$ 8.07
Nonvested (in shares) \| shares	324,530
Nonvested (in dollars per share) \| $ / shares	$ 11.04

XML 51 R41.htm IDEA: XBRL DOCUMENT

Note 6 - Debt (Details Textual) $ / shares in Units, $ in Thousands						9 Months Ended
	Sep. 28, 2018 USD ($) $ / shares shares	Feb. 28, 2018 USD ($) $ / shares shares	Feb. 16, 2018 USD ($)	Sep. 28, 2017 USD ($) $ / shares shares	Mar. 18, 2016 USD ($) $ / shares shares	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Proceeds from Issuance of Long-term Debt, Total						$ 16,711	$ 12,500
Debt Issuance Costs Incurred During Period						7
Warrants in Connection with Term Loan A [Member] \| Additional Paid-in Capital [Member]
Warrants and Rights Outstanding					$ 200
Warrants in Connection with Term Loan B [Member] \| Additional Paid-in Capital [Member]
Warrants and Rights Outstanding				$ 400
Warrants Issued in Connection with Term Loan A and Term Loan B [Member] \| Additional Paid-in Capital [Member]
Warrants and Rights Outstanding		$ 500
Warrants in Connection with Term Loan C [Member] \| Additional Paid-in Capital [Member]
Warrants and Rights Outstanding						200
Oxford Finance LLC and Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan A [Member]
Class of Warrant or Right, Issued During Period \| shares					113,066
Class of Warrant or Right, Issued During Period, Exercise Price \| $ / shares					$ 5.97
Oxford Finance LLC and Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares				45,688
Class of Warrant or Right, Issued During Period, Exercise Price \| $ / shares				$ 12.31
Oxford Finance LLC and Silicon Valley Bank [Member] \| Warrants Issued in Connection with Term Loan A and Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares		60,490
Class of Warrant or Right, Issued During Period, Exercise Price \| $ / shares		$ 9.30
Oxford Finance LLC and Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan C [Member]
Class of Warrant or Right, Issued During Period \| shares	10,238
Class of Warrant or Right, Issued During Period, Exercise Price \| $ / shares	$ 21.98
Oxford Finance LLC and Silicon Valley Bank [Member] \| Term Loan A [Member]
Debt Agreement, Maximum Borrowing Capacity					$ 15,000
Oxford Finance LLC and Silicon Valley Bank [Member] \| Term Loan B [Member]
Debt Agreement, Maximum Borrowing Capacity				$ 12,500
Debt Issuance Costs Incurred During Period				$ 40
Oxford Finance LLC and Silicon Valley Bank [Member] \| Term Loan C [Member]
Debt Agreement, Maximum Borrowing Capacity	$ 5,000
Oxford Finance LLC [Member] \| Warrants in Connection with Term Loan A [Member]
Class of Warrant or Right, Issued During Period \| shares					56,533
Oxford Finance LLC [Member] \| Warrants in Connection with Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares				22,844
Oxford Finance LLC [Member] \| Warrants Issued in Connection with Term Loan A and Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares		30,245
Oxford Finance LLC [Member] \| Warrants in Connection with Term Loan C [Member]
Class of Warrant or Right, Issued During Period \| shares	5,119
Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan A [Member]
Class of Warrant or Right, Issued During Period \| shares					56,533
Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares				22,844
Silicon Valley Bank [Member] \| Warrants Issued in Connection with Term Loan A and Term Loan B [Member]
Class of Warrant or Right, Issued During Period \| shares		30,245
Silicon Valley Bank [Member] \| Warrants in Connection with Term Loan C [Member]
Class of Warrant or Right, Issued During Period \| shares	5,119
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Agreement, Maximum Borrowing Capacity						$ 45,000
Debt Instrument, Interest Rate Floor						8.65%
Debt Instrument, Interest Rate During Period						9.15%
Debt Instrument, Percentage of Funded Loan Amounts due at Maturity						7.75%
Proceeds from Issuance of Long-term Debt, Total			$ 40,000
Repayments of Long-term Debt, Total			27,500
Loan Amendment Payment			$ 800
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member] \| If Term Loan B Funded, Beginning April 2020 [Member]
Debt Instrument, Number of Monthly Principal and Interest Payments						30
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member] \| Prepayment in First Year After Initial Closing [Member]
Debt Instrument, Prepayment Fee, Amount						$ 1,300
Debt Instrument, Prepayment Fee Percentage						3.00%
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member] \| Prepayment in Second Year After Initial Closing [Member]
Debt Instrument, Prepayment Fee, Amount						$ 1,300
Debt Instrument, Prepayment Fee Percentage						2.00%
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member] \| Prepayment After Second Year After Initial Closing [Member]
Debt Instrument, Prepayment Fee, Amount						$ 1,300
Debt Instrument, Prepayment Fee Percentage						1.00%
Term Loans [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member] \| Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate						4.15%
Term Loan A [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Agreement, Maximum Borrowing Capacity						$ 27,500
Debt Issuance Costs Incurred During Period					$ 1,500
Term Loan B [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Agreement, Maximum Borrowing Capacity						12,500
Term Loan C [Member] \| Oxford Finance LLC and Silicon Valley Bank [Member]
Debt Agreement, Maximum Borrowing Capacity						$ 5,000

XML 52 R42.htm IDEA: XBRL DOCUMENT

Note 6 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Term loan	$ 48,488	$ 29,631
Deferred financing fees	(799)	(962)
Discount on debt	(3,865)	(1,994)
Total debt	43,824	26,675
Less current portion of long-term debt		789
Total long-term debt	$ 43,824	$ 25,886

XML 53 R43.htm IDEA: XBRL DOCUMENT

Note 6 - Debt - Deferred Financing Fees (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Deferred financing fees	$ 962
Additions during the period	7
Amortization during the period	(170)
Deferred financing fees	$ 799

XML 54 R44.htm IDEA: XBRL DOCUMENT

Note 7 - Income Taxes (Details Textual) - Greatbatch [Member] - Tax Matters Agreement [Member]	Sep. 30, 2018
Equity Issuance Limitations	30.00%
Asset Disposal Limitations	35.00%

XML 55 R45.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Capital Expenditures Yet to Be Incurred	$ 0.5

XML 56 R46.htm IDEA: XBRL DOCUMENT

Note 8 - Commitments and Contingencies - Minimum Future Estimated Annual Operating Lease Payments (Details) $ in Thousands	Sep. 30, 2018 USD ($)
2018 (remaining 3 months)	$ 178
2019	720
2020	732
2021	745
2022	619
Thereafter	85
Total estimated operating lease payments	$ 3,079

XML 57 R47.htm IDEA: XBRL DOCUMENT

Note 9 - Earnings (Loss) Per Share (Details Textual) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Weighted Average Number Diluted Shares Outstanding Adjustment, Total	0	0	0	0

XML 58 R48.htm IDEA: XBRL DOCUMENT

Note 9 - Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Basic net loss per share:
Net loss	$ (12,967)	$ (11,638)	$ (35,278)	$ (35,998)
Weighted average common shares outstanding (in shares)	14,840	10,697	13,852	10,497
Basic net loss per share (in dollars per share)	$ (0.87)	$ (1.09)	$ (2.55)	$ (3.43)
Diluted net loss per share:
Net loss	$ (12,967)	$ (11,638)	$ (35,278)	$ (35,998)
Weighted average common shares outstanding (in shares)	14,840	10,697	13,852	10,497
Dilutive stock options, restricted stock and restricted stock units (in shares)
Weighted average common shares outstanding – assuming dilution (in shares)	14,840	10,697	13,852	10,497
Diluted net loss per share (in dollars per share)	$ (0.87)	$ (1.09)	$ (2.55)	$ (3.43)
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive (in shares)	1,469	1,549	1,469	1,549

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details